People often invest their lifetime savings when buying a home or apartment, or even go into debt for life. And as if that weren’t enough, housing prices have been reaching incredible heights lately.
People often invest their lifetime savings when buying a home or apartment, or even go into debt for life. And as if that weren’t enough, housing prices have been reaching incredible heights lately.
If you want an apartment with a view of the park, a stylish café around the corner, just a short walk from the centre and a few steps to the club cinema, you have to pay even more. That’s why it is more than advisable not to underestimate the purchase of an apartment, and to arrange it comfortably, affordably and through a professional. One of the most important documents you can do without when transferring ownership is the purchase contract for the condo unit. It should be written with the utmost precision and correspond not only to the current legislation, but also to the specific case. In addition to the correct identification of the seller, the buyer and the unit itself, the contract for the purchase of a residential unit must also reflect all the important conditions of the transfer, such as the terms, the method of payment of the purchase price or the agreements on the handover of the apartment. Even a minor error or omission can cause the rejection of the application for entry into the Land Register or lead to lengthy disputes.
One of our clients wanted to buy a flat. He was in a big hurry to get the purchase contract. He just wanted to check whether it contained any mistakes, but otherwise he was burning with eagerness to sign it. The apartment was not yet standing, but it was supposed to be beautiful, with a dreamy view and in a “trendy” area of Prague.
However, we pointed out to him that according to the contract, the price was to be paid right at the beginning, without any tangible guarantee that the apartment would be built at all(the building permit had not yet been issued for the entire project). At first, the client considered this an inconvenience, which we were throwing a stick under his feet and spoiling his joy. But then he realised that the risk resulting from what we had warned him about was quite high.
This story has a happy ending. The developer agreed to most of our client’s demands and relented. After all, the price was very high, so it was worth fighting for the client at least a little. The contract for the purchase of the apartment was concluded and today the apartment is almost finished and transferred to the ownership of our client.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
If you are faced with signing a document marked “condo purchase agreement”, be sure to check that there is no vague or misleading wording. Many people don’t realize that even seemingly trivial details – such as an inaccurate description of the unit or a mis-specification of accessories (basement, lot share) – can cause significant complications later on. That is why we recommend that you always have the contract of sale for a residential unit checked by a lawyer. He will not only make sure that everything is correctly stated, but also point out possible risks that a layman would normally overlook.
When you buy a home, you need a written contract. This must contain at least the following information, which we have summarised in five simple points:
1.Parties – Clearly defining the seller and buyer is an absolute must. The seller must of course be the owner of the property registered in the Land Registry. Ideally, he should be identified not only by name and address, but also by his birth number.
2. Property – Most mistakes are made when specifying the property. It must be identified exactly as it is defined in the Land Registry. Otherwise, there is a risk that the Land Registry will reject the entire purchase and not transfer the property to the new owner. It is sufficient, for example, if the contract omits the ownership interest in the building or land.
Tip: Learn what to check before buying a property.
3.Purchase Price – Determining the amount of the purchase price is not the only thing that needs to be clearly established. You should also specify exactly how the money will be transferred. And when. Usually escrow is used, in fact we always recommend this to clients. It is not advisable to pay the purchase price in advance (we wrote about this in the story at the beginning of this article). Negotiate the terms and any contractual penalties if something is not realised on time.
4. Taking over the property – The contract also states who will submit the application for registration in the Land Registry and by when, who will pay the fee, when exactly the apartment will be handed over or when the original owner will move out… Here too it is advisable to negotiate sanctions for failure to meet the agreed deadlines.
5. Signatures – In any case, have the signatures verified, just at the post office or Czech Point.
Download the free e-book 5 tips on how to buy or sell a property without risk and go through the process of selling or buying a house, flat and land smoothly.
Buying a home is a major life step where people often invest their life savings or go into debt, so they should not underestimate the legal side of things. The key document is the contract for the purchase of the apartment unit, which must be in writing and precisely define the contracting parties, the property itself according to the land registry data, the amount and method of payment of the purchase price (ideally through escrow), the terms of acceptance of the apartment and the certified signatures. A common mistake is the lack of a sufficient designation of the apartment or the omission of the shares in the land, which can ruin the entire transfer. The example of a client who almost paid for an apartment without a building permit shows how important it is to have a lawyer review the condo purchase agreement. A legal service will help prevent mistakes, protect finances and ensure a smooth purchase.
Wondering how to buy a mortgage-financed home? Then you must not miss our next article, in which you will learn the conditions for obtaining a mortgage.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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